Startup tax
Greywood CPA handles tax for startups and software companies: federal and state returns, research credits, Delaware franchise tax and the founder and employee equity issues that cost the most when missed. Every return is prepared and reviewed by a senior CPA.
Qualified small businesses, generally those with under $5 million in gross receipts and no gross receipts more than five years back, can apply up to $500,000 a year of the federal research credit against payroll taxes, so even pre-revenue startups can get cash back. Federal rules for deducting research costs changed in 2025, and we apply the current rules each year.
Last reviewed: November 2026
Software development often qualifies for the federal research credit: engineers' wages, contractor costs and cloud costs for development and testing can count. For qualified small businesses, up to $500,000 a year of the credit can offset the employer's payroll taxes, starting the quarter after the return is filed. That makes the credit valuable even before you have taxable income.
Delaware corporations with many authorized shares can get a franchise tax notice for a very large amount calculated under the authorized shares method. Recalculating under the assumed par value capital method, using your assets and issued shares, usually cuts it dramatically. The annual report and tax are due March 1.
Hiring remotely can create payroll registration, withholding and income tax filing obligations in each state where employees work. We map your obligations and keep registrations current as you hire.
| Date | What's due |
|---|---|
| March 1 | Delaware annual report and franchise tax |
| April 15 | Form 1120 for calendar-year C corporations (extension to October 15) |
| Quarterly | Payroll filings, where the R&D payroll offset is applied |
| Within 30 days of grant | 83(b) elections for restricted stock |
Yes. Qualified small businesses, generally with under $5 million in gross receipts and none more than five years back, can apply up to $500,000 a year of the credit against payroll taxes.
Delaware defaults to the authorized shares method, which can produce a very large number for startups with many authorized shares. Recalculating under the assumed par value capital method usually reduces it significantly.
Within 30 days after receiving restricted stock. Missing the deadline generally can't be fixed.
Qualified small business stock: eligible stock in a C corporation that, if held long enough, can let shareholders exclude a large part of the gain on sale. The rules were expanded in 2025 for stock issued after that change.
We quote one fixed fee in writing before any work starts, based on entities, states and whether a research credit study is included.
Tell us about your team and spend. A senior CPA will send a fixed-fee proposal within 1–3 business days.